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principle of Financial Management (107) Due: Wed, 11 Nov 18:00 Ed will receive a 10-year annuity with annual payments of $1,000. He will receive the
principle of Financial Management
(107) Due: Wed, 11 Nov 18:00 Ed will receive a 10-year annuity with annual payments of $1,000. He will receive the first payment at the end of Year 1, and the last payment - at the end of Year 10. Ed will invest each payment into a bank account that pays 8%, compounded annually. Although the annuity payments stop at the end of year 10, Ed will not withdraw any money from the account until 25 years from today. This way, his account will continue to earn 8% for the entire 25-year period. What will be the value in the bank account at the end of Year 257 Round your answer to the nearest dollar Select one a $55,340 b. $45,954 c. $48,359 d. $48,000 Step by Step Solution
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